Dow Rises; Not Much Conviction There

By Avi Salzman

Friday’s nonfarm payrolls data showed just enough strength to convince economists that the country is not sliding back into recession, but probably not enough to convince the Fed it’s time to hit the brakes on QE3.

Sweet spot!

And yet, the market did not give a rousing cheer. It gave a golf clap or two at the start of the day, and then the gains began to dissipate in the afternoon. The S&P 500 ended down less than 1 point, or 0.03%. The Dow was up 35 points, or 0.3%. Total composite volume (Nyse, Nasdaq, Nyse MKT and Nyse Arca) of 5.68 billion shares was the lowest since September 24.

Third quarter earnings season is on tap starting next week, and S&P 500 profits are expected to be the worst since 2009. Bernanke & Co. have done some heavy lifting this year. Will QE3 take us through the end of the year?

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.